Average Daily Float

1. The dollar amount of checks or other negotiable instruments that are in the process of collection over a certain period, divided by the number of days in the period; or

2. The number of company shares that are actually outstanding and available for trading on the public market on an average daily basis.

The banking term for float is most commonly applied to banks, although it can also refer to large corporations who have both checks deposited and paid checks outstanding.

As a trading term, the average daily float is a measure of the liquid market for a company's stock. If a company is closely held and only a small portion of the stock is trading in the public markets, it will affect the bid/ask spread and a number of other aspects of how the stock is valued.